How to Calculate Effective Rewards and Benefits for Employees

Having the right employee strategy in place can attract top talent and ensure employee satisfaction, both of which ultimately improve your employer brand. Many businesses today are shifting towards a Total Rewards Strategy, with goals and incentives in place to inspire productivity and performance. 

The Total Rewards Strategy

There is a focus on well-rounded wellbeing for individuals. A total rewards strategy is a benefits system that includes monetary, beneficial and developmental rewards for teams and/or individuals when they achieve their goals.

The concept is that a motivated team enables business growth. Traditional workplace benefits may just be add ons that don’t make the most financial or practical sense to a business. The key is to find value for both the business and employees, and calculate a reasonable structure to fulfill this. 

How to Calculate Employee Benefits 

When you’re calculating your employee benefits, start by setting detailed goals you’d like your employees to achieve. The next step is to determine which incentives make sense to your business. This can include:

  • Time: Offer extra time off or flexible work schedules.
  • Development: Upskill your employees through training to help advance careers or set promotion structures in place. 
  • Bonuses: Offer monetary rewards on a seasonal and year-end basis. 
  • Benefits: Healthcare benefits, pension plans, or gym memberships. 
  • Recognition: Celebrate the company’s achievements to enhance the company culture and boost morale. 

Monitor and measure the success of your rewards program on an ongoing basis. Factors to take into consideration include employee engagement, satisfaction, retention, and performance.

Implement an Effective Rewards Strategy 

Having an effective rewards structure in place can help you attract and retain your employees. It helps incentivise the workforce and provides a sense of purpose. Ensure your company culture uplifts employees and rewarding them in valuable ways. 

It all begins with accurate calculations, and that is where HR analytics comes in. Reach out to us at the HR Analytics Institute. We can help you formulate the most effective employee benefits model for your business.

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